Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on the economic crisis in Venezuela.
Precious Metals:
First, there is this news: Gold inches higher as dollar weakens, central banks point to end of QE
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Next, here is a phone interview: Silver versus Time, Cryptocurrencies & JP Morgan – Mike Maloney and Jeff Clark
Commodities:
Next, we read: Has U.S. Shale Wrecked Its Own Recovery?
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Nick Cunningham: Don’t Hold Your Breath For Deeper OPEC Cuts
Stocks:
B. of A. warns the rise of ETFs is distorting the stock market
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Stock market falls as geopolitical worries persist
Forex:
On to foreign exchange (Forex) news, FXEmpire offers this: Forex Trading Signals – July 06, 2017
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Nick Cawley at DailyFX suggests: Long USD/CHF. JWR’s Comments: I hope that SurvivalBlog readers heeded my advice to hedge a bit into the Swiss Franc (CHF). The CHF is still affordable, but by the end of President Trump’s first term, it probably won’t be! Clearly, Trump wants strong exports and to achieve that he is willing to see a relatively weak US Dollar in foreign exchange.
Economy and Finance (Venezuela):
Venezuela Hikes Minimum Wage Up 50% amid Skyrocketing Inflation. JWR’s Comments: Of course that increase is just a token gesture. The source of Venezuela’s mass inflation misery is successive socialist regimes. The end for the socialist government will probably be spectacular, and will probably come sooner, rather than later.
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What Caused Venezuela’s Collapse Is No Mystery — Except To Economically Illiterate Journalists
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Venezuela Congress begins measuring inflation amid cenbank silence
Tangibles Investing:
Apple Disrupts Silicon Valley With Another Eye-Catcher: Its New Home. JWR’s Comments: This article underscores the old real estate agent’s mantra: “Location, location, location.” One SurvivalBlog reader I know lives in Sunnyvale’s adjoining Birldland neighborhood. (The streets there are named after songbird species.) He told me that back in the 1980s he paid $163,000 for his 1,500 square foot house on a very small (6,000 square foot) lot. He hopes to sell it next year for “somewhere north of $2.2 million.” With just half of the proceeds, he’s planning to buy a 80+ acre ranch and build a custom 3,500 square foot house in northern Idaho. Buy low and sell high, folks!
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To follow up on a recent column about Sterling silver, I found a very useful video from England: How to identify solid silver items and make some extra cash. And here is another: How to find Sterling Silver at the Goodwill.
Provisos:
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News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often “gets the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!
Long term food storage or a way to grow it…a place to hide it…ways to protect it…a trade and tools to help yourself and your neighbors…items for barter…
The growing percentage of the total stock market in index funds (ETF’s and traditional mutual funds, along with high frequency (algorithmic) trading suggests that the next major market downturn will happen far more quickly than those in 2000 and 2008. Those two took more than a year to hit bottom — it’s impossible to predict the time frame for the next one, but half that time could easily happen. Plan accordingly!
Before someone asks me why index investing makes the market more volatile in a downturn: when someone who owns an SP500 index fund decides to sell, they are selling a broad cross-section of the market, not just one or a few individual stocks. Most indexes are weighted towards larger companies, so if those companies struggle, index investors will have to sell the entire market to get rid of them. This is a fundamental change in the overall market.
I have finally started buying gold and silver, not much so far, but still, it sure is satisfying to see it in the safe. And it is thanks to mr Rawles and this blog.
Also, when is the sequel to land of promise due?
When buying precious metals, I suggest sticking to American Eagles, both gold and silver. I also suggest finding a dealer you like and buying solely from them, letting them know you are doing so. My reasoning is: Eagles may be easier to sell in a crisis, are less likely to be counterfeited, and may get different treatment from government when sold. Buying from one place makes it more likely that you’ll have someone to buy them from you when it’s time to sell.
Further comment — yes, buying pre-65 US coins is fine.
Living in Sweden i dont really see hos buying eagles would be helpful to me, but good point in the States. Since we dont have a good dealer in town i buy at whichever branch of Tavex is the closest when i visit Stockholm,
You’re right — my advice was US-centric — apologies. But the principle remains — carefully consider what will be easier to sell and most free of government regulation as you accumulate. Also consider what you’re planning for — a total collapse, grid down, etc. or “just” a more or less temporary financial crisis. If the latter, it will pay to be able to sell quickly and confidentially in the depth of the crisis. You would then purchase real estate, land, businesses, stocks, etc. as a wealth-building strategy.
So far nu PMs are for a really rainy day, when i have more i will be willing go sell off done surplus in a slow ecobomy go build capital when it speeds jo again.
The real question is when to sell. The classic answer is when there’s blood in the streets. This time around that will be literally true. Wait for large bloody riots in most major cities, possibly accompanied with martial law and armies being called out to help, and then sell. Then buy quickly, because the contrarian opportunity may not last long.